N. Net Income per Share

Net Income per Common Share — Basic

The following table sets forth the computation of basic net income per share using the two-class method:


	December 30, 2017		December 31, 2016 (53 weeks)		December 26, 2015
	(in thousands, except per share data)
Net Income	$	99,049	$	87,349	$	98,414

Allocation of net income for basic:
Class A Common Stock	$	73,114	$	63,717	$	71,798
Class B Common Stock		25,391		23,190		26,154
Unvested participating shares		544		442		462

	$99,049		$87,349		$98,414
Weighted average number of shares for basic:
Class A Common Stock		8,933		9,189		9,619
Class B Common Stock*		3,102		3,344		3,504
Unvested participating shares		67		64		62

	12,102		12,597		13,185
Net income per share for basic:
Class A Common Stock	$	8.18	$	6.93	$	7.46

Class B Common Stock	$	8.18	$	6.93	$	7.46

Change in Class B Common Stock resulted from the conversion of 125,000 shares to Class A Common Stock on November 4, 2016, 45,000 shares to Class A Common Stock on November 30, 2016, 100,000 shares to Class A Common Stock on March 7, 2017, and 79,000 shares to Class A Common Stock on October 31, 2017 with the ending number of shares reflecting the weighted average for the period.

Net Income per Common Share — Diluted

The Company calculates diluted net income per share for common stock using the more dilutive of (1) the treasury stock method, or (2) the two-class method, which assumes the participating securities are not exercised or converted.

The following tables set forth the computation of diluted net income per share, assuming the conversion of all Class B Common Stock into Class A Common Stock and using the two-class method for unvested participating shares:


	Fifty-two weeks ended December 30, 2017
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported — basic	$	73,114		8,933	$	8.18
Add: effect of dilutive potential common shares Share-based awards		—		145
Class B Common Stock		25,391		3,102
Net effect of unvested participating shares		7

Net income per common share — diluted	$	98,512		12,180	$	8.09


	Fifty-three weeks ended December 31, 2016
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported — basic	$	63,717		9,189	$	6.93
Add: effect of dilutive potential common shares Share-based awards		—		263
Class B Common Stock		23,190		3,344
Net effect of unvested participating shares		9

Net income per common share — diluted	$	86,916		12,796	$	6.79


	Fifty-two weeks ended December 26, 2015
	Earnings to Common Shareholders		Common Shares		EPS
	(in thousands, except per share data)
As reported — basic	$	71,798		9,619	$	7.46
Add: effect of dilutive potential common shares Share-based awards		—		397
Class B Common Stock		26,154		3,504
Net effect of unvested participating shares		14

Net income per common share — diluted	$	97,966		13,520	$	7.25

Basic net income per common share for each share of Class A Common Stock and Class B Common Stock is $8.18, $6.93, and $7.46 for the fiscal years 2017, 2016, and 2015, respectively, as each share of Class A and Class B participates equally in earnings. Shares of Class B are convertible at any time into shares of Class A on a one-for-one basis at the option of the stockholder.

Weighted average stock options to purchase 785,000, 712,000, and 16,000 shares of Class A Common Stock were outstanding during fiscal 2017, 2016, and 2015, respectively, but not included in computing diluted income per share because their effects were anti-dilutive. Additionally, performance-based stock options to purchase 36,000, 35,000, and 15,000 shares of Class A Common Stock were outstanding during fiscal 2017, 2016, and 2015, respectively, but not included in computing dilutive income per share because the performance criteria of these stock options were not met as of December 30, 2017, December 31, 2016, and December 26, 2015, respectively.

Furthermore, stock options to purchase 12,000 shares of Class A Common Stock were not included in computing diluted income per share because these stock options were cancelled during the fifty-two weeks ended December 30, 2017, due to performance criteria not being met or employee termination prior to vesting.